What is the minimum difference between lot rent plus rent to own payment and the median 2 bedroom apartment rent? For example, if the 2 bedroom apartment rent in the area is $600, and lot rent is $250, what should I set the note payment for the sale of the mobile home? Thanks! Bob
Depends on the house and number of bedrooms. As a general rule, you’d want a ~10 year old 3BR/2BA MH in decent condition to price like a 2BR apartment. So if you’ve got a 3BR like that, price the monthly payments at $350, for a total monthly payment of $600 with the lot rent. If you’ve got a 10-year-old 2BR/2BA, then I might price that at a total payment of $525 or so. A 4BR MH might well be $725. Your note would probably be 8 - 10 years long, with $2,000 down payment.
If your homes are much older (1960s - 1970s), you might still keep the payment around $500 a month, but the note might only run for 2 - 4 years. But ultimately your test ads will tell all. Just run some test ads on craigslist and in your local largest newspaper, and see what pulls best.
To your continued success,